Subscribe to Journal

Wednesday, January 23rd 2013

12:49 PM

The Wealthy Need to Pay a Wealth Tax

QE causes asset values for commodities to rise. This is the benefit of QE, not for the man on the street. QE in the beginning did help stocks and caused a mild upturn in the job picture. But the cost of living rises while wages in a global society don't. The wage increases that these Nominal GDP guys like Scott Sumner wants, in order to counteract the increase in commodity prices, like oil and food, will not be passed onto workers in a global society.

Ultimately this will hurt the American consumer, and it will benefit only the rich. Therefore, if the Fed does this there needs to be a wealth tax in order to offset the extra wealth flowing to the rich through too much QE.